Regulatory Alerts2023-07-31
FMI Standard 12: Exchange of Value Settlement Systems
The Reserve Bank of New Zealand and the Financial Markets Authority jointly issued this standard to regulate designated financial market infrastructures providing exchange of value settlement services. The document mandates that operators must eliminate principal risk by ensuring the final settlement of one linked obligation is contingent upon the final settlement of the other. This requirement applies universally regardless of whether the system settles on a gross or net basis or the specific timing of finality.
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